Chart of the day: 30-year leasehold property price increases quickened to 0.9% QoQ

60-year leasehold and freehold properties also showed increases.

This chart from Savills shows the sales prices of freehold, 30-year leasehold, and 60-year leasehold properties from Q1 2015 to Q3 2022.

The chart shows that prices for 60-year leasehold and freehold industrial properties rose by 1.2% QoQ to $463 per sq ft and $758 per sq ft respectively in Q3.

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Savills said that apart from the longer remaining tenure and nature of freehold leases, the rise in prices was driven by the strong price growth for food factory properties.

Meanwhile, Savills’ basket of industrial properties showed that 30-year leasehold property prices increased at a quicker pace of 0.9% QoQ to $308 per sq ft in Q3.

The quickened pace was led by stronger interest amongst some businesses which prefer properties of a lower quantum, and therefore these are of shorter lease tenures, to mitigate their risks amidst rising economic uncertainty and elevated market volatility.